Are BT shares worth 50% more than this?

TL;DR

Examining British Telecom's stock amidst dividend cuts and market challenges, highlighting potential buying opportunities.

Transcript

hello it's john burford with chart of the week for monday the 11th of may and i'm covering british telecom this time um this uh i think it's a quite an opportune time to cover it uh we had a um a elimination of the dividend last week and also the creation of a rival in the form of the merger of o2 and virgin media so um looks like they're all uh ga... Read More

Key Insights

• 😀 British Telecom faces challenges from dividend cuts and market competition.
• 😘 Long-term chart analysis indicates potential buying opportunities at major lows.
• 😥 Momentum divergences observed at critical points suggest a shift in selling pressure.
• 🍉 Short-term charts exhibit a bullish wedge pattern with targets for a sharp rally.
• 🤗 Keeping an open mind on wave labels is crucial for accurate analysis.
• 🇮🇴 Recent market events impact sentiment and stock price of British Telecom.
• 🤩 Identifying potential buying opportunities amidst challenges is key for investors.

Questions & Answers

Q: How is British Telecom affected by recent events like dividend cuts and market competition?

British Telecom has faced challenges like the elimination of dividends and the emergence of rivals through the merger of O2 and Virgin Media. These factors have impacted the sentiment and stock price of the company.

Q: What can long-term chart analysis reveal about British Telecom's stock?

Long-term chart analysis of British Telecom's stock highlights potential major lows and momentum divergences at critical points. These indicators suggest selling pressure may be drying up, paving the way for a potential buying opportunity.

Q: What insights can be gained from analyzing the wave labels on British Telecom's stock charts?

Wave labels on British Telecom's stock charts offer various interpretations, emphasizing the importance of keeping an open mind. Despite uncertainties in wave patterns, identifying momentum divergences can signal potential trend reversals.

Q: How do short-term charts of British Telecom depict potential opportunities for investors?

Short-term charts of British Telecom show a textbook wedge pattern indicating a potential rally. A thrust out of the wedge and creation of momentum divergences suggest a bullish outlook, with targets set for higher levels.

Summary & Key Takeaways

• British Telecom faces challenges like dividend elimination and competition from O2 and Virgin Media.

• Long-term chart analysis shows potential major lows and momentum divergences at critical points.

• Short-term charts exhibit a bullish wedge pattern and potential for a sharp rally.